1929 Stock Market Crash

The 1929 Stock Market CrashIn early 1928 the Dow Jones Average went from a low of 191 early in the year, to a high of 300 in December of 1928 and peaked at 381 in September of 1929. (1929 ) It was anticipated that the increases in earnings and dividends would continue. (1929 ) The price to earnings ratings rose from 10 to 12 to 20 and higher for the market's favorite stocks. (1929 ) Observers believed that stock market prices in the first 6 months of 1929 were high, while others saw them to be cheap. (1929 ) On October 3rd, the Dow Jones Average began to drop, declining through the week of October 14th. (1929 )

On the night of Monday, October 21st, 1929, margin calls were heavy and Dutch and German calls came in from overseas to sell overnight for the Tuesday morning opening. (1929 ) On Tuesday morning, out-of-town banks and corporations sent in $150 million of call loans, and Wall Street was in a panic before the New York Stock Exchange opened. (1929 )

On Thursday, October 24th, 1929, people began to sell their stocks as fast as they could. Sell orders flooded the market exchanges. (1929 ) This day became known as Black Thursday. (Black Thursday ) On a normal day, only 750-800 members of the New York Stock Exchange started the exchange. (1929 ) There were 1100 members on the floor for the morning opening. (1929 ) Furthermore, the exchange directed all employees to be on the floor since there were numerous margin calls and sell orders placed overnight. Extra telephone staff was also arranged at the member's boxes around the floor. (1929 ) The Dow Jones Average closed at 299 that day. (1929 )

On Tuesday, October 29th, 1929, the crash began. (1929 ) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929 ) This day the Dow Jones Average would close at 230. (1929 ) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929 ) It took...

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...Wall Street Crash of 1929.
A lot of people started to invest in the stockmarket, which cause stocks to rise.
Many people wanted to buy the stocks, but some did not have enough money to.
Banks placed customers money in the stockmarket without their knowledge, which caused problems.
Everyone was trying to enter into the market, which made it scrambled.
Black Tuesday was the worst day in stockmarket history because there were so many orders.
The DOW kept dropping until the panic ended.
People borrowed money nonstop and buying all kinds of stock onthe margin.
Stock pieces kept going higher and it essentially became a bubble.
One day, the bubble broke and everything went negative.
(History.com) Source B
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The ticker went down and started being delayed because everyone was selling his or her stocks.
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� What was the relationship between the Wall Street Crash and the onset of the Great
Depression?
� How strong was the American economy in the 1920s and how real was the prosperity?
1 The Wall Street Crash
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the collapse in...

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During the 1920s increasing numbers of Americans became interested in Wall Street and in buying stocks. A prospective buyer did not have to pay the full price of a stock in order to buy. Instead the practice of "buying on margin" allowed a person to acquire stock by expending in cash as little as ten percent of the price of a stock. The balance was covered by a loan from a broker, who was advanced the money by his bank, which, in turn, accepted the stock as collateral for the loan. Credit was easy, and the Federal Reserve System did little to restrict the availability of money for stock investment.
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